OEF: Strong Long-Term Performance Track Record, Buy

Feb. 21, 2024 6:58 AM ETiShares S&P 100 ETF (OEF), , , , , , , , , 13 Comments
Michael Fitzsimmons
21.98K Followers

Summary

  • The iShares S&P 100 ETF consistently outperforms the broad market, represented by the Vanguard S&P 500 ETF.
  • Ordinary investors often fail to achieve the total returns of the S&P 500 due to mistakes like trying to time the market or over-emphasizing one rigid investment strategy.
  • The OEF ETF has a higher weight in IT and Communications services, while having lower weights in under-performing sectors like Industrials, Energy, and Utilities compared to the S&P 500.
  • Today, I'll take a look at the OEF ETF to see if it is a good vehicle to outperform the S&P 500, or, if there is a better alternative for you.

Top 100 on red carpet

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The total returns of the iShares S&P 100 ETF (NYSEARCA:OEF) has consistently outperformed the broad market, as represented by the Vanguard S&P 500 ETF (VOO) - see the graphic below. That is probably not

This article was written by

21.98K Followers
Michael Fitzsimmons is a retired electronics engineer and avid investor. He advises investors to construct a well-diversified portfolio built on a core foundation of a high-quality low-cost S&P500 fund. For investors who can tolerate short-term risks, he advises an over-weight position in the technology sector, which he believes is still in the early stages of a long-term secular bull-market. For dividend income, and as a 4th generation oil & gas man, Fitzsimmons suggests investors consider a position in large O&G companies that provide strong dividend income and dividend growth. Fitzsimmons' articles on portfolio management recommend a top-down capital allocation approach that is aligned with each individual investor's personal situation (i.e. age, retired/working, risk tolerance, income, net worth, goals, etc) and might include allocations into investment categories such as the S&P500, technology, dividend income, sector ETFs, growth, speculative growth, gold, and cash.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of VOO, QQQ, AVGO, AMZN, GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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